Hundreds of subpostmasters who were wrongly convicted due to a flawed IT system can apply for unlimited compensation.

About 900 people whose convictions for theft and fraud were overturned in May are expected to be eligible for at least £600,000 under a scheme opening today.

The Treasury has set aside around £1billion for victims of what is believed to be one of the worst miscarriages of justice in British history. But there is no upper limit on the amount of money that will be available to those whose lives were torn apart by the scandal.

However the man who spearheaded the fight against the Post Office for compensation and justice for victims said it is merely a “distraction”. Sir Alan Bates told the Mirror: “I think it’s a distraction because they should concentrate on getting the GLO [group litigation order] people out of the way first - the ones who actually brought all this to the forefront."

Before today, there were already three compensation schemes for victims. Sir Alan and others from the original 555-strong group litigation order case, were offered £75,000 and could also go through an assessment process for more.

He said: “The GLO scheme, when it was set up, was meant to be done and dusted by next week - August 7 - but it is still dragging on. I’m still waiting to find out what the new government intends to do about this. They haven’t been in contact on what they plan to do with our group. As far as I’m concerned, it’s just bogged down in bureaucracy.”

Rishi Sunak's Government ordered the mass exoneration of innocent subpostmasters after ITV drama, 'Mr Bates vs the Post Office' triggered a wave of public fury.

Post Office staff were blamed for glitches in the Horizon IT system, developed by the Japanese firm Fujitsu, which made it appear that they were swindling cash. More than 900 subpostmasters were convicted for theft and fraud between 1999 and 2015, with some sent to prison or left bankrupt.

Others who weren't prosecuted - and so are not eligible for this specific scheme - lost their livelihoods and saw their reputations trashed.

The new scheme will allow people to apply for a £600,000 redress package with a simple ID check after the Ministry of Justice scoured court records to find who is eligible.

Those who think they are entitled to more or want to argue their case can apply for a separate route, with no limit on how much they could be awarded. However they are urged to take legal advice as they could receive less than £600,000 if they choose this option and it will take longer.

Applicants will be given a preliminary payment of £200,000 regardless of which route they choose to take. Provisions are in place for applications on behalf of those who have already died, or are too ill to apply themselves.

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Business and Trade Secretary Jonathan Reynolds said: “Postmasters have suffered immeasurably so I hope today’s new redress scheme brings some relief to postmasters who have waited far too long to get back the money that is rightfully theirs.

"Any postmaster who thinks they are eligible for this scheme can come forward and register. We know that every case is different, and this government fully supports the right of every postmaster to choose what is best for them.”

Justice Secretary Shabana Mahmood said: "Justice must be a reality, not an ideal. Today we begin putting this into practice by overturning the convictions of the innocent postmasters affected by this inexplicable and unprecedented miscarriage of justice."

Lawyer Neil Hudgell, whose firm Hudgell Solicitors has represented former subpostmasters during the public inquiry, said more than 170 exonerated postal workers have signed up for assistance with their claims.

He said: "Our work will not be done until every wronged subpostmaster or Post Office worker is cleared without a stain on their character, and compensated fairly."